Kitchen & Bath Design News

MAR 2016

Kitchen & Bath Design News is the industry's leading business, design and product resource for the kitchen and bath trade.

Issue link: http://kitchenbathdesign.epubxp.com/i/648912

Contents of this Issue

Navigation

Page 10 of 80

POSITIVE YEAR-END 2015 results are setting the stage for continued market growth in 2016, according to a consensus of key housing analysts. Among the key statis- tics and forecasts released in recent weeks by government agencies, research frms and industry-related trade associations were the following: HOUSING STARTS The gradual increase in housing production witnessed in 2015 "sets the stage for continued growth in 2016," David Crowe, chief economist for the National Association of Home Builders said last month. "Strong job growth, rising consumer confdence and pent-up demand will keep housing on an upward trend," Crowe commented in the wake of Commerce Dept. fgures showing that nationwide housing starts rose 10.8%, to 1.11 million units, in 2015. Single-family starts posted a yearly gain of 10.4%, to 715,000 units, the government said. "These numbers are in line with what members are telling us: that housing markets are improving, but lot and labor shortages continue to be a problem for many builders," said Tom Woods, chairman of the Washington, DC-based NAHB. EXISTING-HOME SALES A robust bounce-back during December 2015 capped of the best year for existing-home sales (5.26 million units) since the 6.48 million units sold in 2006, and represented a 7.7% gain over the previous year, the National Association of Realtors reported last month. Although "some growth" is expected to be evident in 2016, housing "will struggle to replicate last year's percent increase in sales," according to Lawrence Yun, chief economist for the Washington, DC-based NAR. "In addition to insufcient supply levels, the pace of sales will be constricted by tepid economic expansion, rising mortgage rates and decreas- ing demand for buying in oil-producing metro areas," Yun commented. Total existing-home sales fnished 2015 at a pace of about 5.26 million units, the highest pace since 2006, but still some 25% below the prior peak of 7.08 million units, set in 2005 (see related graphic, above). CABINET & VANITY SALES Sales of kitchen cabinets and vanities post- ed solid gains in 2015, rising 8.5% over 2014 sales totals, the Kitchen Cabinet Manufacturers Association said last month. According to the Reston, VA-based KCMA, manufacturers participating in the associa- tion's "Trend of Business" survey reported that 2015 sales of cabinets totaled some $6.5 billion, after a solid 14.8% gain in the month of December. Sales of stock cabinets gained 12.8% in 2015, while semi-custom cabinet sales rose 4.2% and custom cabinet sales increased 13.6%, the KCMA reported. APPLIANCE SHIPMENTS Domestic shipments of major home applianc- es, helped by a robust 17% December boost, closed 2015 sharply above shipments during the previous year, according to the Association of Home Appliance Manufacturers. The Washington, DC-based AHAM reported last month that 2015 appliance shipments totaled 72.51 million units, up 8.1% from the 67.08 million units shipped in calendar year 2014. Shipments were reported up across virtually all product categories, AHAM said. Remodeling Spending to Rise Modestly in 2016, Analysts Say LAS VEGAS — Spending on residential remod- eling will continue to trend modestly upward in 2016, due largely to homeowners' increased fnancial security, according to analysts at a press conference hosted by the National Association of Home Builders Remodelers at the International Builders' Show (IBS) here in January. The Washington, DC-based NAHB project- ed that remodeling spending for owner-occu- pied single-family homes will rise 1.1% in 2016 over 2015, and another 1.9% in 2017. "Our remodeler members have regained confdence in the market as homeowners move forward with new projects," said NAHB Remodelers Chair Tim Shigley. Government estimates reveal that improve- ments to owner-occupied housing gained 1.3% last year, said Paul Emrath, NAHB's v.p./survey and housing policy research. "Going forward, we expect this modest growth in the market to continue, fueled in part by steady appreciation in house pric- es that will enable owners to tap into their home equity to fund remodeling projects," Emrath said. Stage Set for Continued Gains in 2016 Although continued modest growth is expected in 2016, existing-home sales will likely struggle to replicate last year's 6.5% increase over the previous year, forecasters predict. More optimistic growth projections, as refected in the graphic above, are seen for 2016 housing starts and new-home sales, with gains in all key housing indices accelerating into 2017. Source: National Association of Realtors OUTLOOK FOR MAJOR U.S. HOUSING INDICES Actual & Forecasted % Change Compared to Previous Year n 2014 n 2015 n 2016 n 2017 Existing- Home Sales New S-F Home Sales Housing Starts S-F Starts M-F Starts -2.9 6.5 1.5 3.9 2.3 7.9 10.9 11.7 7.8 4.9 9.9 15.5 10.6 15.7 12.7 5.0 2.4 13.2 15.1 18.9 10 Kitchen & Bath Design News • March 2016 BAROMETERS A LOOK AT KEY STATISTICS & TRENDS SHAPING THE INDUSTRY MARKET ANALYSIS

Articles in this issue

Archives of this issue

view archives of Kitchen & Bath Design News - MAR 2016